(5 days, 4 hours ago)
Commons ChamberI will make some progress and then give way.
Members should take the word of Centre for Cities, which has made it clear that expanding franchising could expose councils to serious financial risks, because after decades of deregulated services, many transport authorities simply lack the skills and capacity to manage a comprehensive bus network, yet would be financially responsible if an undertaking goes wrong.
These are not just hypothetical concerns. The experience in Greater Manchester illustrates just how easily costs can spiral, leaving the taxpayer out of pocket. The Secretary of State will no doubt be aware that initial projections published in Greater Manchester combined authority’s transport revenue budget put the cost of transitioning to a franchised system at £134.5 million for 2024-25. That figure has since ballooned, with ongoing operational costs now forecast to exceed £226 million per year by 2025-26, which is a 68% increase in one year. Over four years, the scheme could cost up to £1 billion—far, far more than anticipated. Moreover, the House will know that the annual level of bus subsidy in London last year amounted to £646 million. Greater London is the most heavily populated and most economically active area in the entire country. It also has the highest level of bus use. Yet even with all those advantages, it requires that level of annual subsidy just to keep the network running.
When my hon. Friend talks about the increased risk smaller local authorities would face through franchising, he could be talking about my local authority, Isle of Wight council. Does he see anything in the Bill that is appealing to small unitary authorities, or is this really just a Bill for bigger metropolitan areas and large towns?
The risk of the Bill is that it does not come with substantial funding attached. That is the problem. It is mismanaging the public’s expectations. I expect we will hear from a parade of Labour MPs talking about how it will transform services in their local area. Without the required level of funding, it simply will not.
(3 weeks, 2 days ago)
Commons ChamberThat is so true. I was delighted to join my hon. Friend on a recent visit to Fleetwood nautical campus in her constituency, where I saw the excellent facilities and what a fantastic advocate she is for the people of Fleetwood and its port. I briefly met with the soon-to-be new owners of that port. Once that deal is finalised and they have plans to progress, I will sit down with my hon. Friend and the new owners to look at the potential for what we can achieve there.
Isle of Wight ferry company, Red Funnel, is controlled by Canadian pension funds. It is unregulated and charges Isle of Wight residents up to £400 to take a return car ferry crossing. Does the Minister support that ownership model and pricing structure for a lifeline transport connection in the UK?
I can tell the hon. Gentleman that the Avanti up to Manchester can cost more, but that does not help his constituents in the Isle of Wight, who have been struggling for some time. That is why I went to the Isle of Wight to meet the hon. Member and representatives from the council. We are establishing an local transport forum, and we have agreed a number of ways forward, looking at ticketing, pricing and the reliability of those ferries to the Island. I promise to continue to be engaged, but I will need the hon. Member’s help with this as well.
(2 months, 1 week ago)
Commons ChamberAs all of us know, Scotland has a world-renowned shipbuilding industry, so it saddens me that, under the SNP, Scotland’s ferries are being built elsewhere. I am aware that Scottish colleagues want to see reforms to how ferries are run and procured. In the meantime, I urge the Scottish Government to reconsider sending vital jobs and investment abroad.
I welcome the Secretary of State’s comments on improving everyday transport for UK residents, and her comments on Scottish ferries. Does she agree that my constituency, on the Isle of Wight, should not be left behind in the Government’s transport plans? Will she agree to intervene and look at all options in order to regulate private equity—currently, we are entirely reliant on it for our connectivity with the UK mainland, which is harming our local economy—and to look at the potential of empowering any future combined mayoral authority with some regulatory power over cross-Solent transport?
I had a useful meeting with my hon. Friend the Member for Isle of Wight West (Mr Quigley) about this issue a couple of weeks ago, and I am afraid he slightly beat the hon. Gentleman to it in suggesting that we should consider what powers might be available through any future mayoral combined authority. Let me assure the hon. Gentleman that we are speaking to stakeholders across the island, including the ferry operators, to understand these issues in more depth and how we might make improvements going forward. That engagement will continue, and my hon. Friend the Maritime Minister will have a meeting with all stakeholders in due course.